Blu-ray Premiums On DVD Rentals
Why do companies like Blockbuster and Netflix charge their customers a premium for renting Blu-ray DVDs? Earlier this week Blu-ray.com posted a story about Netflix charging their customers more money for renting Blu-ray titles - Netflix Shakes Down Blu-ray Renters… Again!
In Canada, the equivalent of Netflix is Zip.ca. At the moment, Zip doesn’t charge a premium for renting Blu-ray titles but I have to wonder how much longer they will continue this policy. Canadian companies often copy what American companies are doing, for better or worse.
Blockbuster Online (in the US) doesn’t charge more for Blu-ray titles, yet Blockbuster stores in Canada do. As of April 3, 2009, Blockbuster Canada movie rentals are:
- $7.22 for Blu-ray titles
- $6.43 for DVD titles
Rogers Video movie rentals are a little bit cheaper:
- $6.99 for Blu-ray titles
- $5.99 for DVD titles
So why does anybody charge more for Blu-ray discs? Netflix will tell you that the movie studios charge higher prices for Blu-ray and they have to pass those costs on to the consumer. Blockbuster is fighting for its life and probably doesn’t charge more for Blu-ray discs just to stay competitive. Viacom owns Blockbuster and Paramount PIctures. I’m guessing that Blockbuster probably pays little to nothing for titles from Paramount Pictures.
Zip.ca vs Netflix Pricing
The Official Netflix Blog has all the details on the new Blu-ray pricing and it isn’t really that bad when you compare it to its Canadia counterpart, Zip.ca.
Zip.ca offers:
- 4 DVDs out at-a-time (11 per month)
- Monthly plan cost: $24.95
- Additional monthly charge for Blu-ray access on this plan: None
- Monthly plan cost with Blu-ray access: $24.95
Netflix offers:
- 4 DVDs out at-a-time (Unlimited)
- Monthly plan cost: $23.99 (USD)
- Additional monthly charge for Blu-ray access on this plan: $5
- Monthly plan cost with Blu-ray access: $28.99 (USD)
The Zip.ca plan limits you to 11 titles per month and costs $31.43 (USD). The Netflix paln is $28.99 (USD) and you get unlimited rentals. Canadians are also paying more tax on their movie rentals. Even with the premium pricing on Blu-ray discs, Netflix customers are getting a pretty good deal compared to their Canadian neighbours.
Posted in Movies at 12:06 PM
Comments
Rogers-on-demand charges $7.99 for the HD version of a film versus $5.99 for standard def. Did rental places have a price disparity between VHS and DVD when DVD came out?
Posted by: Ryan on April 3, 2009 5:46 PM
Interesting point about VHS and DVD.
I checked some old usenet forums and it seems that Blockbuster used to charge $3.49 for all VHS and DVD titles (new releases) in 2001. So the whole idea of charging more for Blu-ray seems a bit like a money grab.
The other thing you have to consider is that piracy wasn’t as rampant when DVD was replacing VHS as the medium of the day. Blu-ray prices are way too high to be competitive.
When people can download a movie for free or buy the DVD for $10 less than the Blu-ray version, it doesn’t bode well for the growth of the Blu-ray market.
Posted by: jay 
on April 3, 2009 11:14 PM
What? Why would they would raise the price on Blu-ray? In this economy,they should be lowering the price or do some sort of price lowering if you rent a lot of blu-ray movies.
They should offer Blu-ray discount, get the 11th half off or something.
On a side note, Slumdog millionaire is coming out on Blu-ray. I am gonna add it to my collection.
I always get cheap [Blu-ray] from Amazon when they have a sale.
Posted by: kevin on April 4, 2009 12:33 AM
Why rent when you can just borrow your neighbour’s?
Posted by: Mr. Roper on April 4, 2009 2:57 AM
As much as companies might pitch it as a deal, how many people truly have time to order/watch/return 11 movies in a month? I’m guessing it is a small percentage of the market - 1-3% tops - which means the deal is no deal at all for the majority. Hiking rates fills the company’s coffers and, let’s face it, what Amazon.CA keeps on sale is, well, crap. Plus they raised their prices by $2 per Blu-ray this week so the cash grab is on - and everywhere!
I’m not convinced Blu-ray can survive as a format at such prices. There is always suckers out there, yes. But also a limit to what people will pay even for premium quality - so here’s hoping Mr. Roper and I have the same neighbour!
Posted by: Wayne Huizenga on April 4, 2009 3:16 AM
They do it because they can. Blu-Ray customers are the hobbyists and afficionados who are prepared to pay a bit more for the increased quality, so they get away with it.
Posted by: Paul on April 4, 2009 7:19 AM
1.99 at Walmart kiosk
Posted by: G on April 6, 2009 3:05 PM
